Gloom on the high street deepens

The worst December retail sales in seven years sparked concern among investorsJUSTIN TALLIS/AFP/GETTY IMAGES

Weak spending figures and a surprise profits warning from Carpetright heightened market fears over the state of Britain’s shopkeepers and put retailers’ shares under renewed pressure.

Official data showing the worst December retail sales in seven years sparked concern among investors, who made the shares in Next and Kingfisher, the owner of B&Q, the biggest fallers in the FTSE 100.

Carpetright’s shares tumbled 39 per cent after a “significant deterioration”during the crucial post-Christmas period, while the shares of Bonmarché, the fashion retailer, fell 20 per cent as it warned of “difficult market conditions”.

Analysts suggested that the severity of the problems at Carpetright, which has slashed its profit forecast to between £2 million and £6 million from between £13.8 million and £16.5 million, triggered concerns…

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